← halfin journalApr 07, 2026 · 8 min read
Compliance

MiCA Phase 2, in plain English

The CASP licence track, stablecoin reserve rules, and what changes for merchants accepting EUR-denominated crypto invoices in the EU.

RS
R. SahinLegal & Policy
MiCA Phase 2 explainer cover
compliance · cover
photo · Waldemar Brandt on Unsplash

The EU's Markets in Crypto-Assets regulation (MiCA) is the most consequential piece of crypto legislation passed anywhere in the last decade. Phase 1 landed in 2024. Phase 2 is rolling out through 2026. The practical changes land first on EUR-denominated crypto invoices.

This article is informational only. It is not legal advice. Talk to a regulator-savvy lawyer before making any compliance decisions.

What MiCA covers (and doesn't)

MiCA regulates crypto-asset service providers (CASPs): exchanges, custodians, wallet providers, and payment infrastructure. It also regulates stablecoin issuers and a category called asset-referenced tokens (ARTs).

It does not regulate:

  • The underlying cryptocurrency (Bitcoin, Ether) themselves
  • DeFi protocols where there is no identifiable intermediary
  • NFTs in most cases, with carve-outs
  • Pure on-chain peer-to-peer transfers between non-custodial wallets
mica · scope
cover · placeholder
MiCA scope, in one diagram

Phase 2: what's new

Phase 2 brings two things that matter for merchants:

1. Stablecoin reserve and disclosure rules

Stablecoin issuers operating in the EU must hold reserves backed 1:1 by liquid assets, audit those reserves quarterly, and disclose them publicly. Issuers that don't comply can't be marketed to EU consumers.

The practical effect for merchants: some stablecoins you accept today may not be MiCA-compliant tomorrow. Tether (USDT) is the most prominent gray-area issuer. USDC (Circle), EURC (Circle), and a handful of EU-issued stables are clearly compliant.

Your checkout page may need a disclosure surface for non-compliant stablecoins, depending on your customer base. We ship this automatically.

2. The CASP licence

If you operate a crypto-asset service in the EU, you need a CASP licence from your home Member State's regulator (BaFin in Germany, AMF in France, etc.). Most merchants accepting crypto via a CASP-licensed provider don't need their own licence. That is the licensed-provider model.

casp · flow
cover · placeholder
CASP licence flow

What this means for merchants

  • If you accept EUR-denominated invoices, you'll see a new disclosure on the checkout for any non-compliant stablecoin. We ship this automatically; no integration change required.
  • If you have EU-resident customers, the existing flow is unchanged for compliant stablecoins. USDC settlements, in particular, look exactly the same.
  • If you operate your own CASP-licensed entity, you have new reserve and reporting obligations. Most of our merchants don't fall in this bucket; the few who do already have legal teams on it.

Timeline

DateMilestone
Jan 2025Phase 1 transition window closes
Q3 2025Stablecoin issuer reserve audit deadline
Q1 2026CASP licence applications open in all Member States
Q3 2026Full Phase 2 enforcement, transition window closes

What to do

If you're already routing EUR settlements through a licensed provider, you're mostly fine. The disclosure surface is the visible change, and we ship it for you. The CASP licence track is a "you'll know if it applies to you" situation.

If you're hand-rolling crypto acceptance with a non-licensed counterparty, this is the moment to reconsider that decision.

R. Sahin, halfin legal & policy

↳ end of articlehalfin journal · Apr 07, 2026